The Profit, hosted by Marcus Lemonis, is filled with drama, reality-show style. Most viewers probably watch it for the entertainment value. And entertain, it does. Marcus Lemonis’ The Profit has plenty of intrigue and conflict as he attempts to rescue failing businesses, one per episode.
He applies his simple yet compelling three-P philosophy – People, Process and Product. If two of the three are in good shape, and the deficiency is repairable, Marcus will invest hard cash. He takes 100% control of the business in order to get it back on track.
Marcus Lemonis entrepreneurial quotes
There’s one element to this show that I really appreciate. I always learn from the Marcus Lemonis entrepreneurial quotes placed strategically throughout each episode. These Marcus Lemonis entrepreneurial quotes pertain to what is occurring in the show at the time they’re stated.
They also deliver good wisdom. They’re from Marcus Lemonis himself. He’s an expert in business with a very respectable background, education, and track-record. I consider these Marcus Lemonis entrepreneurial quotes to be authoritative, meaningful and inspiring.
I’ll list them for you
To provide you with some of these Marcus Lemonis entrepreneurial quotes, I’ll list some of them. Then I’ll provide valuable information supporting each one.
This blog post is the sixth in a series, where each one contains Marcus Lemonis entrepreneurial quotes from an individual episode. That way, you can watch it and put these Marcus Lemonis entrepreneurial quotes into their original context.
The Profit – Season 3, Episode 6
Grafton Furniture is a multi-generational custom furniture business in Miami, FL. It was started in 1964, by Estephan Grafton. His son Steve now runs the business. The company is about to be passed on to the third generation – the founder’s grandson, Steven. Third generation businesses have a high failure rate – almost 90%.
Third generation business
Quote: The thing that I love the most about Grafton Furniture is the fact that it’s a three generational business. That tells me that there’s a lot of love and a lot of passion here. What worries me is that generational businesses often struggle. We know that second generation businesses fail at about a 60% rate. We know that it’s even worse for third generational businesses that fail at almost 90%.
Time and materials
Quote: The key to manufacturing is understanding that time and materials are the two big components that go into determining profitability.
Steve, the current owner, doesn’t understand his margins until finishing an order. Also, his equipment is out-dated and slow. This causes margins to be lower due to higher labor costs.
Quote: In any manufacturing business, the most important document is the work-in-process report. It tells you where jobs are, in their life cycle.
Grafton has a work-in-process report, but they don’t updated it during the manufacturing process. You can see what jobs they have going, but there isn’t a record of the status of each job. This is very inefficient and disorganized. They must track how complete each job is, by percentage, and then track where each job is, in the process, in order to improve their processes.
Quote: The industry standard on custom furniture margins is around 70%. Grafton Furniture is operating at about 50%. We have a lot of work to do to figure out where that 20% is leaking out.
Marcus Lemonis helps them upgrade their equipment which speeds up the manufacturing process – saving on labor. He also puts Steven in charge of quality assurance to avoid customer returns, which also drives the costs up.
Lastly, the production floor layout was updated to increase workflow efficiency. Together, these increase the custom furniture margins to 70%, where they should be.
Quote: Grafton’s primary business is the custom furniture business – a great foundation. And they sell mostly to designers. But I think the real opportunity here, is to find a way to sell directly to customers.
They design a quick-ship line of chairs which have a few custom wood and fabric choices. They are easy to make and they have a great price-point. There will only be a 50% margin, but the high volume will make up the difference.
They partner with DirectBuy with their chairs. DirectBuy invites them to a conference, which is a big deal. This is the start of a relationship which can really grow their ability to sell to the public.
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Marcus Lemonis Entrepreneurial Quotes!
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